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THE SOCIALIST REPUBLIC OF VIETNAM

THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

THE NATIONAL ASSEMBLY

OF THE SOCIALIST REPUBLIC OF VIETNAM

IXth Legislature, 9th Session

(From March 2 to March 20, 1996)

LAW ON MINERALS

Minerals are almost unrecoverable resources and an important asset of the nation, which must be managed, protected, exploited and used in a rational, economical and efficient manner so as to meet the requirements of industrialization - modernization of the country for immediate and long-term sustainable socio-economic development as well as the need of national defense and security;

In order to enhance the effectiveness of the State management, the protection and efficient use of all mineral resources of the country; to encourage the development of mineral mining and processing industries; to protect the environment and ecology, and to ensure labor safety in mineral activities;

Pursuant to Articles 17, 29 and 84 of the 1992 Constitution of the Socialist Republic of Vietnam;

This Law prescribes the management, protection and basic geological survey of mineral resources and mineral activities,

Chapter I

GENERAL PROVISIONS

Article 1.- Ownership of mineral resources

Mineral resources found on the land territory, islands, and in the internal waters, the territorial waters, the exclusive economic zone and the continental shelf of the Socialist Republic of Vietnam shall be owned by the entire people and come under the unified management of the State.

Article 2.- Objects and scope of regulation

This Law shall apply to the management, protection and basic geological survey of mineral resources and mineral activities, including prospection, exploration, exploitation and processing of solid and gaseous minerals, mineral water and natural thermal water; except oil and gas and other kinds of natural water which shall be regulated by other legal documents.

Article 3.- Definition

In this Law, the following words and expressions shall be construed as follows:

1. Minerals mean natural resources lying underground, on land in the form of natural concentrations of minerals, useful mineral substances in solid, liquid or gaseous forms, which are exploitable at present or in the future. Minerals or mineral substances lying at dumping sites of a mine, which can be re-exploited later, are also minerals.

2. Mineral water means natural waters, found underground or on land surface, which contain a number of compounds having biological characteristics in high content classified in accordance with Vietnamese Standards or foreign standards allowed to be applied by the Vietnamese State.

3. Natural thermal water means natural waters found underground or on land surface, which always have high temperature classified in accordance with Vietnamese Standards or foreign standards allowed to be applied by the Vietnamese State.

4. Basic geological survey means the study and survey of the structure or composition of material, the history of evolution and development of the Earth crust and the relevant conditions and laws on bio-mineralogy.

5. Basic geological survey of mineral resources means the overall evaluation of mineral potentials on the basis of basic geological survey, used as scientific foundation and orientation for the prospection and exploration of minerals.

6. Mineral prospection means study of the geological materials and documents on mineral resources, and actual geological survey so as to delineate the prospective areas for exploration of minerals.

7. Mineral exploration means any activity aimed at finding, discovering, evaluating the reserve and quality of minerals and the technical conditions for mining, including technological specimen taking and testing, and feasibility studies for mineral extraction.

8. Mining means basic construction of a mine, excavation, production and any activities directly related to mineral extraction.

9. Mineral processing means classification, enrichment of minerals or other activities aimed to increase the value of extracted minerals.

Article 4.- Management, protection and use of mineral resources

The State shall make policy to manage, protect and rationally, economically and effectively use mineral resources; concurrently protect the environment and other relevant resources, and to ensure the national defense, security, labor safety and labor hygiene in mineral activities.

The Government shall exert unified management of all mineral resources and mineral activities throughout the country, and shall be responsible for organizing the implementation of the mineral law.

The People�s Council and the People�s Committee at all levels shall, within their duties and powers, apply measures to manage and protect mineral resources; to supervise and inspect the enforcement of the mineral law in their localities.

The Vietnam Fatherland Front and its member organizations shall, within their duties and powers, be responsible for popularizing and mobilizing people to fulfill their obligations of protecting mineral resources and supervising the enforcement of the mineral law.

The State bodies, economic organizations, socio-political organizations, social organizations, People�s Armed Force units and all citizens shall have to implement the mineral law and have rights and powers to disclose and denounce acts of violation against the mineral law.

Article 5.- Encouragement of investment in mineral activities and development of mineral mining and processing industry

1. The State encourages investment in the development of mineral mining and processing industry; provides preferential policies on mineral activities in remote and highland areas, places with poor infrastructure, and on minerals needed for domestic use; gives priority consideration to projects with modern techniques and technologies applied in mining, processing and producing products of high value and high socio-economic efficiency.

2. The State shall create conditions for the State enterprises to play the leading role in mining and processing important minerals.

3. The State shall protect the right to ownership of capital, assets, and other legitimate rights and interests of organizations, individuals in mineral activities in accordance with provisions of this Law and other provisions of law.

4. The Government shall issue a list of minerals subject to export or import ban in each period; shall restrict the export of minerals in the form of raw materials.

Article 6.- Organizations, individuals entitled to mineral activities

Organizations and individuals meeting the conditions prescribed in this Law and other provisions of law shall be entitled to mineral activities.

The Government shall lay down the financial, technological and other conditions of organizations, individuals allowed for mineral activities.

Article 7.- Interests of the people in locality(ies) where minerals are mined or processed

The interests of the people in locality(ies) where minerals are mined or processed shall be protected by the following major policies:

1. On the basis of the revenue earned from mineral mining and processing, the State shall annually channel a portion of the budget for socio-economic development in the locality(ies) where minerals are mined or processed; and create conditions for stabilizing the production and life of the people in areas where minerals are mined or processed who have to change their places of residence and production place;

2. Organizations or individuals licenced to mine or process minerals shall have the responsibility to combine the requirements of the mineral mining and processing activities with the requirements of the capital construction of infrastructure to protect, rehabilitate the environment, ecology and land in the locality(ies) in accordance with the approved feasibility study report; give priority to the recruitment of local labor for mineral activities and related services.

Article 8.- Strict prohibition of breach of mineral law

The disclosure of State secrets on mineral resources and the conduct of illegal mineral activities are strictly forbidden.

Chapter II

PROTECTION OF MINERAL RESOURCES, BASIC GEOLOGICAL SURVEY OF MINERAL RESOURCES

Article 9.- Protection of untapped mineral resources

1. The Government shall adopt policies and measures to protect untapped mineral resources.

The State Mineral Administration shall be responsible for determining areas with untapped mineral resources; collaborating with various ministries, services and local government in protecting the untapped mineral resources.

The People�s Council and the People�s Committee at all levels shall, within the scope of their tasks and powers, have to take necessary measures to protect the untapped mineral resources in the locality(ies).

State bodies, socio-political organizations, economic organizations, social organizations, People�s Armed Force units and all citizens have the right and responsibility to protect untapped mineral resources and keep State secrets on untapped mineral resources.

2. The planning and designing of population centers, public facilities, water works and other permanent projects in areas with mineral resources must have the consent of the State Mineral Administration; for defense and security projects, the Government shall issue particular regulations.

3. Organizations or individuals eligible for mineral activities shall have the responsibility to protect the untapped mineral resources in their operating areas.

Article 10.- To protect mineral resources in mineral exploration, mining and processing

1. Organizations or individuals allowed to explore minerals shall have to make an overall evaluation and full report on all kinds of mineral resources discovered in their licensed areas to the State Mineral Administration and ensure that no damage shall be caused to the mineral resources.

2. Organizations or individuals allowed to exploit or process minerals shall have to retrieve to the maximum all kinds of minerals determined as having economic value, and take measures to preserve the minerals already extracted but not yet put to use.

3. If new kind(s) of minerals are discovered in the mineral mining and processing activities, the organizations or individuals allowed to conduct the mineral activities shall have to report immediately to the State Mineral Administration for consideration and decision.

Article 11.- Basic geological survey of mineral resources

The State shall invest in and organize the effective implementation of the basic geological survey of mineral resources on the basis of the basic geological surveys and apply scientific and technological advances to the elaboration of national strategies and policies on mineral resources, and the development of mineral mining and processing industry.

The State encourages foreign organizations or individuals to cooperate with Vietnam in the field of basic geological survey of mineral resources.

The Government shall provide regulations on the management of the basic geological survey of mineral resources.

Article 12.- Specimens, data and information on mineral resources

1. All specimens, data and information on mineral resources shall be stored, managed and used in accordance with the provisions of law.

2. The State shall monopolize the purchase of those specimens and samples of special scientific values or which are valuable and rare; prohibit all acts of hiding, destroying, devaluating or illegally trading the samples or specimens. The Government shall stipulate the list and criteria of specimens and samples which are exclusive for the State to purchase.

3. After the timelimit provided for by the Government as from the date of expiry of a mineral activity license, the competent State body shall be entitled to provide other organizations or individuals with information on mineral resources in relation to that license.

Chapter III

AREAS OF MINERAL ACTIVITIES, ENVIRONMENTAL PROTECTION IN MINERAL ACTIVITIES

Article 13.- Areas of mineral activities

1. The areas of mineral activities shall include:

a/ Restricted areas where mineral activities shall be carried out under restricted terms and conditions stipulated by the Government;

b/ Tender areas where mineral activities shall only be carried out on the basis of tender results;

c/ Normal areas where mineral activities shall be carried out without any binding on regulations specified at Points a and b of this Clause.

2. The Government shall stipulate and announce the restricted areas and tender areas.

Article 14.- Areas banned or temporarily banned from mineral activities

1. Mineral activities shall not be carried out in areas that are banned or temporarily banned from mineral activities for reasons of defense, security, protection of historical and cultural relics, scenic beauty or for other public interests.

The Government shall stipulate and announce the areas banned or temporarity banned from mineral activities.

2. In case mineral activities are being legally carried out in areas banned or temporarily banned from mineral activities, the Government shall make reasonable compensation for losses caused to the eligible organizations or individuals by the ban or temporary ban.

Article 15.- Areas with hazardous minerals

The State Mineral Administration shall have the responsibility to mark off areas with hazardous mineral deposits, notify the local authority, competent labor and health, agencies so that measures can be taken to protect the people�s health and limit the adverse impact on the environment and ecology in the locality.

Article 16.- Protection of the environment in mineral activities

1. The organizations and individuals allowed to carry out mineral activities shall have to use technology, equipment and materials, and observe other provisions of the Law on Environmental Protection in order to minimize the adverse impacts on environmental components; to rehabilitate the environment, ecology and the land after the termination of each stage or the whole process of mineral activities.

2. The organizations and individuals allowed to carry out mineral activities shall have to bear all the costs in environmental protection, rehabilitation of the ecology and the land. Such expenses shall be determined in the evaluation of environmental impact report; report on the feasibility study of the mineral mining and processing or exploration project. The organizations and individuals allowed to exploit minerals must make a deposit in a Vietnamese bank or a foreign bank licensed to operate in Vietnam, in order to ensure the rehabilitation of the environment, the ecology and the land.

Article 17.- The use of land in mineral activities

1. The organizations or individuals allowed to mine or process minerals are entitled to sign land-lease contract in order to carry out mineral activities in accordance with provisions of the law on land and in compliance with this Law.

Upon the invalidation of a mining license or a mineral processing license, the land-lease contract shall also be terminated; when each part of mining areas is returned, corresponding change shall also be made in the land-lease contract.

In the event of a change of the organization or individual licensed to mine, process minerals, a new land-lease contract shall be signed.

2. The organizations or individuals allowed to prospect and explore for minerals shall not have to lease land in the areas to be prospected or explored, if the prospecting or exploring activities do not affect the land use of the organizations or individuals that are using land legally, but have to compensate for damage caused by the prospecting or exploring activities. In the event that the prospecting or exploring activities require a regular use of land, the organizations or individuals allowed to conduct the prospection or exploration must lease land in such areas in accordance with the provisions of the Government. Organizations or individuals allowed to mine minerals under ground shall have to lease land in the areas still unused, but shall have to compensate for damage, if any.

3. Organizations or individuals allowed to conduct mineral activities shall have to compensate for the damage caused by the use of land for mineral activities.

Article 18.- The use of water in mineral activities

1. Organizations or individuals allowed to conduct mineral activities are entitled to use natural water sources for mineral activities as provided for by the law on water and in accordance with this Law.

2. Water sources and volume of water and the mode of its use in mineral activities must be specified in the exploration project, the report on the feasibility study of mineral extraction and processing as well as the mine design; the used water must be treated in accordance with hygiene standards before its discharge by organizations or individuals allowed to conduct mineral activities.

Article 19.- The use of infrastructure in mineral activities

1. Organizations or individuals allowed to conduct mineral activities shall be entitled to use the traffic systems, communication system, electricity and water supply system and other infrastructures in service of mineral activities as provided for by law.

2. Organizations or individuals allowed to conduct mineral activities shall have the responsibility to invest in improving, upgrading, renovating or building infrastructures in accordance with the exploration project or the already approved feasibility study report concerning mining or processing minerals.

Article 20.- Insurance in mineral activities

Organizations or individuals allowed for mineral activities must buy insurance for facilities or projects in service of mineral activities, insurance for environment, social insurance, labor insurance and other kinds of insurance in accordance with provisions of law.

Chapter IV

MINERAL PROSPECTION

Article 21.- Mineral prospecting permit

1. The mineral prospection permit shall be issued for areas where no organizations or individuals are conducting legal exploration or extraction of minerals in accordance with the provisions specified in Clauses 1 and 2 of Article 5 and Articles 13 and 14 of this Law.

2. The term of a mineral prospecting permit shall not exceed twelve months and can be extended in accordance with the regulations of the Government, but the total extension shall not exceed twelve months.

3. The mineral prospection permit shall not be transferred to other organizations or individuals.

Article 22.- Rights of organizations or individuals allowed to prospect for minerals

Organizations or individuals allowed to prospect for minerals shall have the following rights:

1. To use the State�s data and information on mineral resources, relating to the purpose of prospecting and the areas to be prospected, in accordance with the provisions of law;

2. To carry out the prospection in accordance with the terms and conditions specified in the permit;

3. To take from the area under prospection and even from Vietnam all kinds of specimens and samples to be analyzed and tested as provided for by the Government, provided that the amount and types of the specimens and samples shall conform with the characters and requirements of the prospecting activities;

4. To be entitled to renew or return the prospection permit;

5. To make a complaint or file a lawsuit against a decision to withdraw a mineral prospecting permit or other decisions made by State bodies, as provided for by law;

6. To enjoy other related rights in accordance with the provisions of this Law.

Article 23.- Obligations of organizations, individuals allowed to prospect for minerals

Organizations or individuals allowed to prospect for minerals shall have the following obligations:

1. To pay permit fees, charges for the use of the State�s information and data on mineral resources, as provided for by law;

2. To protect the environment, ensure labor safety and labor hygiene in the course of mineral prospecting activities;

3. To pay compensation for any damage caused by prospecting activities;

4. To submit a report on the results of prospecting activities to the State Mineral Administration before the expiry of the prospecting permit;

5. To observe the regulations on administrative management, social order and security;

6. To fulfill other related obligations in accordance with the provisions of this Law.

Article 24.- Revoking mineral prospecting permit

A mineral prospecting permit shall be revoked in the following cases:

1. The organization or individual allowed to prospect for minerals breaches one of the provisions in Article 23 of this Law and fails to make a remedy within the time limit stipulated by the Government from the date of issuance of a written notice by the State Mineral Administration.

2. The prospection areas are declared permanently or temporarily banned from mineral activities in accordance with the provisions specified in Clause 2, Article 14 of this Law.

3. The individual allowed to prospect for minerals dies or the organization allowed to prospect is dissolved or bankrupt.

Chapter V

EXPLORATION OF MINERALS

Article 25.- Exploration license

1. An exploration license shall be issued for areas where no organization or individual is legally exploring or mining mineral, in accordance with the provisions specified in Clauses 1 and 2 of Article 5 and Articles 13 and 14 of this Law.

2. The prospection covered by a license shall be stipulated by the Government.

3. The duration of an exploration license shall not exceed twenty four months and can be extended in accordance with the regulations of the Government, but the total extension time shall not exceed twenty four months. In necessary cases, an exploration license may be renewed for the organization or individual that has prospected the area and whose license expired.

4. The Government shall provide the procedures for granting of exploration licenses to foreign organizations or individuals investing in Vietnam.

Article 26.- Right of organizations, individuals holding mineral exploration license

Any organizations or individuals licensed to explore minerals have the following rights:

1. To use data, information of the State on mineral resources concerning the purpose and areas covered by exploration license in accordance with the provisions of law;

2. To carry out the exploration in accordance with terms and conditions of the exploration license;

3. To take from the exploration area and even from Vietnam all kinds of specimens and samples to be analyzed and tested as provided for by the Government, provided that the amount and types of the specimens and samples shall be in conformity with the characters and requirements of the exploration activities;

4. To have exclusive rights in applying for mining license within the exploration areas in accordance with the provisions specified in Clause 1 of Article 31 of this Law;

5. To apply for a renewal, return of the exploration license or return of a part of exploration area in accordance with the provisions of the Government;

6. To transfer the exploration rights to another organization or individual in accordance with the provisions of the Government;

7. To inherit exploration right in accordance with the provisions of law in case the exploration license holder is an individual;

8. To make a complaint or file a lawsuit against a decision to revoke the exploration license or other decisions made by State bodies, as provided for by law.

9. To enjoy other related rights in accordance with provisions of this Law.

Article 27.- Obligations of organizations, individuals licensed to explore minerals

Organizations or individuals licensed to explore minerals have the following obligations:

1. To pay license fees, fees for exclusive exploration, and for the use of State information and data on mineral resources and other financial obligations in accordance with the provisions of law;

2. To make a deposit in accordance with the provisions of law;

3. To carry out the exploration project as approved;

4. To protect the mineral resources and the environment, ensure labor safety and labor hygiene in the course of exploration activities;

5. To pay compensation for any damage caused by exploration activities;

6. To notify the provincial People�s Committee of the locality where mineral exploration is licensed of the exploration plan prior to its execution;

7. To collect, keep data, information relating to mineral resources and report on the results of exploration to the State Mineral Administration, report on other activities to the competent State body in accordance with the provisions of law;

8. To deliver the final report on the results of exploration activities to the State Mineral Administration prior to the expiry date of the exploration license;

9. To carry out work when the exploration is invalidated in accordance with the provisions specified in Point b, Clause 2, Article 30 of this Law;

10. To implement the regulations on administrative management, social order and security;

11. To fulfill other related obligations in accordance with the provisions of this Law.

Article 28.- Exploration project

Exploration project shall have to prescribe the schedules, volume of work, technology, measures to ensure labor safety, labor hygiene and environmental protection and the estimated exploration cost. It shall be evaluated by the State Mineral Administration for consideration of issuance of exploration license.

The estimated cost of the exploration project shall not be less than the minimum level of cost stipulated by the Government. In case the actual cost is less than the minimum cost, the organization or individual concerned must remit the difference to the State budget.

In case of a change of schedule and of the estimated cost, the organization or individual concerned must report in time to the State Mineral Administration for consideration and decision.

Article 29.- Withdrawal of exploration license

The exploration license shall be revoked in the following cases:

1. The licensed organization or individual fails to carry out the exploration activities without a plausible reason six months after the license took effect;

2. The licensed organization or individual breaches one of the regulations specified in Article 27 of this Law and fails to remedy it within the time limit stipulated by the Government from the date of issuance of a written notice by the State Mineral Administration.

3. The areas covered by exploration license that are announced as banned or temporarily banned from mineral activities in accordance with provisions specified in Clause 2, Article 14 of this Law;

4. The individual licensed to explore mineral dies without exploration heir or the organization being licensed to explore minerals is dissolved or bankrupt without any organization or individual inheriting its rights and obligations.

Article 30.- Invalidation of an exploration license

1. An exploration license shall be invalidated in the following cases:

a/ The license is revoked;

b/ The license has expired;

c/ The license is returned.

2. When the exploration license is invalidated:

a/ All rights relating to the exploration will also terminate;

b/ Within a time limit provided for by the Government, the organization or individual licensed to explore minerals shall have to move all its property of concerned parties out of the exploration areas; to restore the exploration areas back to a safe state, protect the mineral resources, rehabilitate the environment, ecology and land; to hand in all specimens and samples as well as gathered data and information on mineral resources to the State Mineral Administration.

3. The stipulations specified in Point b, Clause 2 of this Article shall not apply to areas where the exploration license holders have already applied for the renewal of license or for license in accordance with regulations, and the application is being considered.

Chapter VI

MINING AND PROCESSING MINERALS

Section 1. MINING MINERALS

Article 31.- Mineral mining license

1. A mineral mining license shall be granted to an organization or an individual holder of an exploration license that has already carried out the exploration provided that this organization or individual has fulfilled all the obligations specified in the exploration license and observed provisions of law.

Within six months from the date of expiry of the exploration license, if the exploration license holder fails to apply for a license for mining minerals in the explored areas, a new exploration license or a mining license regarding those areas may be granted to another organization(s) or individual(s).

2. With regard to the already explored areas, if none of the organization(s) or individual (s) conducting exploration or mining activities is legitimate, the mining license shall be granted to an organization(s) or individual(s) meeting the conditions prescribed in this law, in accordance with provisions in Clauses 1 and 2 of Article 5 and Articles 13 and 14 of this law.

3. The time-limit of a mining license shall be set on the basis of the feasibility study report of mineral mining for each project, but it shall not exceed thirty years and can be renewed in accordance with the provisions of the Government; the total extension time shall not exceed twenty years.

4. In case a foreign organization or individual or a joint venture with a foreign party applies for a mining license, the license shall be granted simultaneously with or after the issuance of an investment license in accordance with the Law on Foreign Investment in Vietnam.

Article 32.- Rights of the organizations, individuals licensed to mine minerals

An organization or individual licensed to mine minerals shall have the following rights:

1. To use data and information of the State on mineral resources, relating to the mining purposes and areas covered by the mining license in accordance with the provisions of law;

2. To carry out mining or processing activities in accordance with the terms and conditions of the mining license; exploration activities in areas covered by mining license;

3. To store, transport, market inside Vietnam and export the extracted minerals in accordance with law;

4. To apply for the renewal or return of the mining license, or return of part of the mining area in accordance with the regulations of the Government;

5. To transfer to other organizations or individuals the right to mining in accordance with the regulations of the Government;

6. To inherit the right to mining in accordance with the provisions of law in case the licensee is an individual;

7. To mine minerals which accompany the principal minerals, provided that all obligations in relation to the mining of those accompanied minerals are fulfilled in accordance with the regulations of the Government;

8. To file a complaint or a lawsuit against a decision on the withdrawal of the mining license or another decision of State agencies as prescribed by law;

9. To enjoy other related rights in accordance with the regulations of this Law.

Article 33.- Obligations of the organizations, individuals licensed to mine minerals

The organizations or individuals licensed to mine minerals shall have the following obligations:

1. To pay license fees, fees for the use of the State�s data and information on mineral resources, the mineral resource tax and other financial obligations in accordance with laws;

2. To ensure the progress of capital construction of the mine and production activities in accordance with the approved feasibility study report and mine design;

3. To fully extract the minerals, protect the mineral resources; ensure labor safety and hygiene; apply measures to protect the environment in accordance with the approved evaluation report on environmental impact;

4. To collect and file data and information on mineral resources and submit the report on the results of the mining activities to the State Mineral Administration; reports on other activities to competent State bodies in accordance with law;

5. To register the date of commencing the capital construction at the mine and the date of commencing production with the State Mineral Aministration; to notify the provincial People�s Committee of the locality where the mine is located of the mining plan prior to its execution;

6. To fulfill the obligations on securing the interests of the people in areas where minerals are extracted, in accordance with Clause 2, Article 7 of this Law;

7. To pay compensation for all damages caused by mining activities;

8. To create favorable conditions for scientific research to be carried out, with the State�s permission, within the mining area; for the construction, permitted by competent State bodies, of transportation works, water pipelines, power transmission lines and communications lines across the mine, provided that the legitimate rights and interests of the organizations or individuals holding mining licenses be ensured;

9. To furnish a summary report on the results of mining activities to the State Mineral Administration prior to the expiry of the mining license; to close down the mine, rehabilitate the environment, ecology and the land when the mining license is invalidated in accordance with the provisions specified in Points b, c and d of Clause 2, Article 40 of this Law;

10. To observe all regulations on administrative management, social order and security;

11. To fulfill all other related obligations in accordance with the provisions of this Law.

Article 34.- Mineral resource taxes

1. The mineral resource taxes shall be calculated on the basis of the actual commercial mining output and their selling price.

2. The tax rate frame, tax rate and regime of collection and payment of mineral resource taxes shall be stipulated by the tax laws.

Article 35.- Labor safety and hygiene in mining activities

1. The organizations or individuals licensed to mine minerals and all people working in the mine shall have to observe the provisions of the law on labor safety and hygiene.

2. The labor regulation in a mine shall be formulated and promulgated in accordance with the provisions of the law on labor. Regulation on labor safety and hygiene must conform to the standards, criteria, and rules on labor safety and hygiene promulgated by competent State bodies.

3. In the face of any danger of an adverse event relating to labor safety, the mine executive director shall immediately apply necessary measures to eliminate the cause of the danger.

4. When an adverse event relating to labor safety occurs, the mine executive director shall immediately apply urgent measures to eliminate the cause of such event; render first aid and evacuate people from the danger area; report in time to competent State bodies; protect the assets and keep intact the site in accordance with law.

The local administration, State agencies, economic organizations, socio-political organizations, social organizations, units of the People�s Armed Forces and all citizens shall have to render assistance in rescue work and overcoming the consequences of the event relating to labor safety occurring in the mining area.

5. The organizations or individuals licensed to mine minerals shall have to comply with the regulations on periodical and irregular reporting with regard to labor safety and hygiene in accordance with law.

Article 36.- Mine executive director

1. The mine executive director appointed by the mining license-holding organization or individual to directly manage mining activities shall be responsible for the assigned tasks in accordance with law.

The mine executive director must have professional qualifications and mining management capability.

2. The mining license-holding organization or individual shall notify in writing the State Mineral Administration of the professional qualifications and management capability of the mine executive director.

The State Mineral Administration shall be entitled to refuse and request the concerned organization, individual to replace the mine executive director when he is judged not qualified for the job.

3. Mining activities shall not be conducted without a mine managing director.

Article 37.- Feasibility study report relating to mining, mine design

1. Feasibility study report relating to mining and mine design shall be evaluated and approved in accordance with the regulations of the Government.

2. Mine design shall be in conformity with the feasibility study report relating to mining and the report on evaluation of environmental impacts. The organizations or individuals licensed to mine minerals shall have to hand in a mine design to the State Mineral Administration prior to the commencement of construction.

3. Should there be any changes in the feasibility study or mine design in the course of mining activities, the organizations or individuals licensed to mine minerals shall have to report in time to the State Mineral Administration for consideration and decision.

Article 38.- The status quo map of mine

The status quo map of the mine shall be kept at the mine site. Periodically, as provided for by the Government, and when requested, the organization or individual holding license shall have to hand in a mine map attached to a report on mining activities to the State Mineral Administration.

The organization or individual concerned shall be responsible for the accuracy and completeness of the mine map.

Article 39.- Withdrawal of mining license

A mining license shall be withdrawn in the following cases:

1. The organization or individual licensed to mine minerals fails, without sound reasons, to commence capital construction of the mine within twelve months from the date when the license takes effect;

2. The organization or individual licensed to mine minerals fails, without sound reasons, to commence production activities within twelve months from the proposed date of commencement set in the approved feasibility study report;

3. The organization or individual licensed to mine minerals breaches any provision in Article 33 of this Law and fails to make a remedy within the timelimit stipulated by the Government from the date of issuance of a written notice by the State Mineral Administration;

4. The areas covered by the mining license are declared permanently or temporarily banned from mineral activities in accordance with provisions of Clause 2, Article 14 of this Law;

5. The individual licensed to mine minerals dies and has no legal heir, the organization licensed to mine is dissolved or bankrupt and no organization or individual inherits the rights and obligations thereof;

6. The investment license of the foreign organization or individual is invalidated.

Article 40.- Invalidation of a mining license

1. A mining license shall be invalidated in the following cases:

a/ It is withdrawn;

b/ It expires;

c/ It is returned.

2. Upon the invalidation of the mining license:

a/ All rights relating to the mining license shall also terminate;

b/ All projects and equipment for mine safety and environmental protection located in the area covered by the license shall belong to the State, removal or destruction thereof is prohibited;

c/ Apart from the assets stated in Point b of this Clause, within the time limit stipulated by the Government, the organizations or individuals holding mining licenses must move all the assets of their own and of related parties out of the area specified in the mining license; After this deadline, all the remainder of assets shall come under State ownership;

d/ Within the time limit stipulated in Point c of this Clause, the organizations or individuals holding mining licenses shall have to fulfill all obligations relating to the closure of the mine, restoration of the environment and the land in accordance with provisions of this Law and other stipulations of law.

Article 41.- Mining of common construction materials

The mining of minerals to be used as common construction materials shall also be carried out in accordance with the provisions on mineral mining of this Law.

The Government shall provide for the list of minerals classified as common construction materials and the cases where the license for mining is not required.

Article 42.- Mining of mineral water, natural thermal water

1. Apart from their observance of other provisions of this Law, the organization or individual licensed to mine mineral water, natural thermal water shall have to apply measures to protect water sources from pollution; periodically monitor the situation, check the quality of the water sources and take prompt measures to deal with any adverse changes; and refrain from mining beyond the volume permitted.

2. The mining of mineral water or natural thermal water for the purpose of medical treatment, health care and refreshment shall be approved by a competent medical body.

Article 43.- Mining of precious, rare, special and hazardous minerals

The mining of precious, rare, special and hazardous minerals shall be carried out in accordance with the provisions of this Law and other laws.

The Government shall provide for the list of precious, rare, special and hazardous minerals.

Section 2. MINERAL PROCESSING

Article 44.- Processing license

An organization or individual involved in mineral processing shall have to apply for a processing license, except cases where processing activities are associated with the licensed mining activities.

The issuance and withdrawal of the processing license shall be provided for by the Government.

Article 45.- Rights of the organizations or individuals licensed to process minerals

The organizations or individuals licensed to process minerals shall have the following rights:

1. To purchase the minerals which are extracted legally; import equipment, technology, materials in direct service of the processing activities; carry out processing activities in accordance with the terms and conditions of the license;

2. To store, transport, market inside the country and export the processed minerals in accordance with the provisions of law;

3. To apply for extension or return of the license, transfer of the mineral processing right to other organizations or individuals in accordance with the provisions of the Government;

4. To legate the mineral processing right in accordance with law in case the license holders are individuals;

5. To make a complaint, file a lawsuit against a license withdrawal decision or other decision by the competent State body as prescribed by law;

6. To enjoy other related rights in accordance with the provisions of this Law.

Article 46.- Obligations of the organizations or individuals licensed to process minerals

The organizations or individuals licensed to process minerals shall have the following obligations:

1. To pay license fees, taxes and other financial obligations in accordance with law;

2. To retrieve to the maximum the useful components of minerals;

3. To apply technology and implement measures to minimize the adverse impacts on the environment, living environment in accordance with the provisions of law on environmental protection;

4. To ensure labor safety, labor hygiene;

5. To compensate for any damage caused by the processing activities;

6. To submit a report on the processing activities to the State Mineral Administration; to send a report on other activities to the competent State body as provided for by law;

7. To observe all regulations on administrative management, social order and security;

8. To fulfill all other related obligations in accordance with the provisions of this Law.

Article 47.- Processing of precious, rare, special and hazardous minerals

The processing of precious, rare, special and hazardous minerals shall be carried out in accordance with the provisions of this Law and other regulations of laws.

Article 48.- Encouragement to develop local mineral processing industry

1. The State shall adopt preferential policies to encourage the investment in:

a/ Projects to process minerals into pure materials and products; on-site processing projects;

b/ Projects in which the mineral mining and processing are part of a production chain and materials made from minerals are used to produce items for home consumption and export.

c/ Projects for manufacturing mineral processing equipment suited to the practical conditions of Vietnam and the requirements of advanced processing technology.

2. The Government shall periodically readjust the export and import of minerals; restrict the import of materials which could be manufactured from domestic minerals so as to encourage the development of local mineral processing industry.

Section 3. FULL EXTRACTION

Article 49.- Full extraction

Full extraction means a form of extracting minerals under circumstances in which investment in industrial extraction is inefficient in areas where minerals lie scattered and the mining areas are located in mines subject to close-down decisions; or non-industrial mining of minerals for common construction materials.

The State Mineral Administration shall mark off the areas for full extraction.

Article 50.- Full extraction license

The full extraction license shall be granted only to Vietnamese organizations or individuals; priority shall be given to the organizations or individuals that reside permanently in the locality where minerals are discovered; the license shall not be issued for full extraction in areas where legal exploration or mining activities are being conducted and areas permanently or temporarily banned from mineral activities as provided for in Clause 1, Article 14 of this Law.

The duration of a full extraction license shall not exceed three years and can be extended in accordance with Government provisions, but the total extension shall not exceed two years.

Article 51.- Rights of the organizations or individuals holding full extraction licenses

The organizations or individuals licensed for full extraction shall have the following rights:

1. To carry out extraction in accordance with the terms and conditions specified in the license and specific conditions for full extraction as stipulated by the Government;

2. To store, transport, process and market the extracted minerals in accordance with law;

3. To apply for extension or return of the full extraction license;

4. To make a complaint or file a lawsuit against a license withdrawal decision other decision by State bodies as provided for by law.

Article 52.- Obligations of organizations or individuals holding full extraction licenses

The organizations or individuals licensed for full extraction shall have the following obligations:

1. To pay license fees, mineral resource taxes and other financial obligations as provided for by law;

2. To compensate for any damage caused by the mining activities;

3. To restrict damage and losses caused to mineral and other resources; protect the environment, ecology and infrastructural works;

4. To apply measures to ensure labor safety and hygiene in mining activities;

5. To adhere to regulations on administrative management and social order and security;

6. To record and keep all the results of the mining, processing and marketing activities;

7. To create favorable conditions for scientific researches with State authorization within the mining areas.

Article 53.- Withdrawal of full extraction license

1. A full extraction license shall be revoked in the following cases:

a/ The organization or individual licensed for full extraction fails to fulfill the obligations specified in Article 52 of this Law;

b/ New mineral resources are discovered while the mining areas are no longer suitable to the full extraction form and conditions;

c/ The full-extraction areas are declared banned or temporarily banned from mineral activities as provided for in Clause 2, Article 14 of this Law;

2. When a full extraction license is revoked or expires, the organization or individual concerned shall have to move all their properties out of the mining area, rehabilitate the environment, ecology and land.

3. In case a full extraction license is revoked in accordance with the provisions in Points b and c, Clause 1 of this Article, the organization or individual holding full extraction license is entitled to reasonable compensation for the losses as provided for by the Government.

Chapter VII

STATE MANAGEMENT OF MINERALS

Article 54.- Tenets of State management of minerals

The State management of minerals includes:

1. Formulating strategies, plans and policies related to the protection and rational, economical and efficient use of mineral resources and development of the mineral mining and processing industry;

2. Promulgating legal documents regarding mineral resources and organizing their implementation;

3. Issuing, extending or withdrawing mineral licenses; authorizing the transfer, inheritance of the right to mineral activities and the return of mineral licenses; registering basic geological surveys of mineral resources and mineral activities;

4. Appraising, approving, evaluating projects, reports, and mine designs with regard to mineral activities;

5. Checking, inspecting basic geological survey activities with regard to mineral resources, mineral activities;

6. Adopting policies in respect of the people in localities where minerals are extracted, processed, and where hazardous minerals are found;

7. Applying measures to protect mineral resources;

8. Keeping and protecting documents and State secrets on mineral resources;

9. Training scientific workers and managerial cadres for mineral activities, disseminating, popularizing and guiding the implementation of the Law on Minerals;

10. Promoting international cooperation in the field of basic geological survey of mineral resources and mineral activities;

11. Settling disputes, complaints or denunciations arising from the mineral activities and dealing with breaches of the Law on Minerals within the respective jurisdiction.

Article 55.- Competence of State management of minerals

The Government shall, within its duties and powers, perform the unified State management of minerals throughout the country.

The Ministry of Industry shall assume the function of State management of minerals. The Ministry of Industry, the concerned Ministries, ministerial-level Agencies, Agencies attached to the Government and People�s Committees at all levels shall, within their duties and powers, have to coordinate their efforts in exerting State management over minerals.

The Mineral Reserves Evaluation Council shall assist the Government to appraise, consider and approve the mineral reserves. The organizational structure and operation of the Council shall be stipulated by the Government.

The People�s Committees at all levels shall perform the function of State management of minerals in their respective locality in accordance with the provisions of this Law and the assignment of authority by the Government.

The organizational structure, duties and powers of the mineral management agencies of the Ministry of Industry and People�s Committees at various levels shall be stipulated by the Government.

Article 56.- Authority, procedures for issuing, extending and withdrawing mineral licenses

1. The assignment of authority to issue, extend and withdraw a mineral license must ensure the uniform and centralized management of the Government over minerals, on the basis of the character of each type of mineral as well as the duties and powers of the State agencies at central and local levels.

2. The authority to issue, extend, and withdraw mineral licenses and procedures for issuing, extending, withdrawing and returning mineral licenses, transferring and inheriting the right to mineral activity, registration of mineral activities shall be stipulated by the Government.

Article 57.- Settling disputes arising from mineral activities

All disputes in mineral activities shall be settled as follows:

1. The agency vested with the authority to issue a mineral license shall be authorized to settle disputes over the right to mineral activities arising from the use of such mineral license; in case of disagreement with the decision of the dispute settling agency, a complaint or a lawsuit can be filed to the competent State body in accordance with law;

2. Other disputes arising from mineral activities shall be dealt with in accordance with the assigned authority and the procedures stipulated by law.

Chapter VIII

THE SPECIALIZED MINERAL INSPECTORATE

Article 58.- The specialized mineral inspectorate

The State Mineral Administration shall perform the function of specialized mineral inspection. The organizational structure and operations of the specialized mineral inspectorate shall be stipulated by the Government.

Article 59.- Duties of the specialized mineral inspectorate

The specialized mineral inspectorate shall have the following duties:

1. To check, inspect the observance of the regulations on:

a/ Contents of the mineral licenses;

b/ Keeping State secrets relating to mineral resources;

c/ The protection and rational use of mineral resources;

d/ The rights and obligations of the organizations or individuals entitled to mineral activities;

2. To coordinate with the State labor inspectorate and the specialized environmental protection inspectorate in executing the tasks of checking, inspecting labor safety, labor hygiene and environmental protection in mineral activities;

3. To coordinate with the inspectorate of the ministries, services and localities in mineral inspection.

Article 60.- Authorities of the specialized mineral inspectorate

In the course of inspection, an Inspection Team and the Inspectors shall be entitled to:

1. Demand the concerned organizations or individuals to furnish documents or answer necessary questions;

2. Investigate, collect evidence and documents relating to the contents and objects of the inspection and carry out on-site technical examination measures;

3. Decide to suspend the unlicensed mineral activities; temporarily suspend, in emergency cases, activities that threaten to cause a serious accident to human beings or severe losses to mineral resources or damage to the environment; and at the same time promptly report to the competent State body for decision, or petition the competent State body to suspend such activities;

4. Handle, within their competence, or petition the competent agency to deal with any breach of the mineral law.

The Inspection Team and Inspectors shall be responsible before law for their decisions.

Article 61.- Liabilities of the organizations and individuals towards activities of the specialized mineral inspectorate

1. All organizations and individuals shall have the responsibility to create conditions for the Inspection Team and Inspectors to discharge their tasks.

2. Organizations or individuals subject to inspection shall have to obey any decision made by the Inspection Team or Inspectors.

Article 62.- Right to make complaint, denunciations and to file lawsuits

1. An organization or individual subject to inspection shall be entitled to make a complaint or file a lawsuit against any decision made or measures taken by the Inspection Team or Inspectors.

2. All organizations and individuals shall be entitled to denounce to competent State agencies any acts of breach of the mineral law committed by any organizations or individuals.

The agency receiving such complaints, denunciations or lawsuits, shall have to look into them and settle the case in time in accordance with law.

Chapter IX

REWARDS AND HANDLING OF BREACHES

Article 63.- Rewards

All organizations or individuals with meritorious deeds in studying, discovering and protecting the mineral resources shall be rewarded in accordance with provisions of law.

Article 64.- Handling of violations

1. A person who discloses State secrets on mineral resources, carries out mineral activities without license, obstructs the protection of mineral resources, hinders legal mineral activities of other organizations or individuals, hinders mineral examination, inspection, or breaches other provisions of this Law, shall, depending on the seriousness of the violation, be subject to administrative sanction, discipline or examination for penal liability; in case of losses, shall be subject to compensation in accordance with provisions of law.

2. A person who takes advantage of his position or power to violate regulations on issuance of mineral license or other provisions of this Law shall, depending on the seriousness of the breach, be subject to administrative sanction, discipline or examination for penal liability; in case of losses, shall be subject to compensation in accordance with provisions of law.

Chapter X

IMPLEMENTATION PROVISIONS

Article 65.- Implementation provisions

1. The rights and obligations of the organizations or individuals granted mineral licenses prior to the effective date of this Law, and such licenses are still valid and not subject to prohibition as provided for by this Law, shall be applied in accordance with the terms and conditions of such mineral licenses, except cases where the organizations or individuals comply voluntarily with the provisions of this Law.

2. This Law shall also apply to mineral activities carried out in Vietnam by foreign organizations and individuals, except otherwise stipulated by the international treaty which Vietnam has signed or acceded to.

3. All previous provisions which are contrary to this Law shall be annulled.

4. The Government shall make detailed provisions for the implementation of this Law.

Article 66.- Enforcement

This Law takes effect on September 1st, 1996.

(This Law was passed by the IXth National Assembly of the Socialist Republic of Vietnam, 9th Session, on March 20, 1996).

The Chairman of the National Assembly

NONG DUC MANH